BitMine Faces $7.35 Billion Loss as Ethereum Weakens

BitMine, led by Tom Lee, is experiencing a significant paper loss of approximately $7.35 billion due to the continued weakening of Ethereum. According to ChainCatcher, Ethereum's price has dropped over 57% from its peak of around $4,955 in October 2025, with its market dominance falling from about 15% to 10%. BitMine initiated its Ethereum reserve strategy in July 2025, following a $250 million private fundraising round, and has since become the largest publicly listed Ethereum reserve company, holding about 5.28 million ETH, which accounts for approximately 4.37% of the total Ethereum supply. Despite the growing losses, Tom Lee remains committed to a long-term accumulation strategy. BitMine has indicated it will slow down its purchasing pace but will not abandon its Ethereum reserve plan, aiming to hold 5% of the total Ethereum supply by December this year. However, technical risks are increasing, with Ethereum currently near the lower edge of a bearish 'rising wedge' pattern. If support is breached, prices could fall to the $1,600 region, representing a potential 25% decline from current levels. Should this scenario occur, BitMine's unrealized losses could expand to approximately $10.1 billion, based on an average holding cost of around $3,513 per ETH. Market sentiment is also deteriorating. Data from on-chain analytics platform Santiment shows that the ratio of bullish to bearish comments on social media has dropped from over 2:1 at the end of April to nearly 1:1. Analysts suggest that more traders are beginning to view Ethereum as 'dead money,' lacking upward momentum.